Iona Capital has backed an anaerobic digestion (AD) plant at Charlesfield in Scotland.
The plant, near St. Boswells in the Scottish Borders, will process a mixture of farm based feedstocks and inject biomethane directly into the local gas grid.
It is the second Scottish AD plant that Iona Capital has invested in, following a contribution to Scotland’s first gas-to-grid AD plant at Coupar Angus, Perth.
The Charlesfield plant is expected to be operational by the end of June 2015 and will produce over 3 million cu m of biomethane per year which will be injected directly into the local grid.
Nick Ross, director at Iona Capital said: “The biogas market continues to offer significant long term growth potential and attractive risk weighted returns to investors.”
As with the Coupar Angus project, the plant will be built by German firm MT Energie.
Iona Capital did not disclose the size of the investment in the venture.